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2018 Attachment O Projection Stakeholder Meeting

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Presentation on theme: "2018 Attachment O Projection Stakeholder Meeting"— Presentation transcript:

1 2018 Attachment O Projection Stakeholder Meeting
Ameren Illinois Company September 19, 2017

2 Purpose is to review 2018 Projected Transmission Rate Calculations
Agenda Purpose is to review 2018 Projected Transmission Rate Calculations Protocol Timeline ROE Complaint Cases AIC 2018 Projected Calculations Attachment O Attachment GG Attachment MM 2018 AMIL Pricing Zone NITS Charge Significant Projects Projected to be Placed in Service in 2018

3 (Forward-Looking Protocols)
Protocol timeline Date Schedule (Forward-Looking Protocols) June 1 Posting of annual true-up for prior year September 1 Deadline for annual true-up meeting Posting of net projected revenue requirement for following year October 15 Deadline for annual projected rate meeting November 1 Deadline for joint meeting on regional cost-shared projects March 15 Transmission Owners submit informational filing to the Commission

4 ROE complaints MISO ROE Complaints RTO Adder (ER15-358)
1st Complaint (EL14-12) Covers November 12, 2013 through February 11, 2015 FERC order received September 28, 2016; set the Base ROE at 10.32% Applicable going forward until 2nd complaint order 2nd Complaint (EL15-45) Covers February 12, 2015 through May 11, 2016 Initial decision issued June 30, 2016; recommended Base ROE at 9.70% Additional refunds will be required upon receipt of Final Order RTO Adder (ER15-358) FERC approved a 50 basis point adder for participation in an RTO Effective January 6, 2015, applicable to complaint case refunds after that date and going forward (i.e., total ROE is now 10.82%)

5 MISO ROEs for the 2016 True-Up
ROE complaints MISO ROEs for the 2016 True-Up 12.38% ROE for January 1 – September 27 10.82% ROE for September 28 – December 31 Refunds already provided for EL14-12 Two phase process Phase 1 related to ROE impact on projected rates for forward looking TOs and annual updates for historical TOs. These were settled in February 2017. 2013, 2014 & 2015 projected rates from 11/12/13 to 2/11/15 Phase 2 related to the ROE impact on true-ups calculations for forward looking TOs. These were settled in June 2017. 2013, 2014 & 2015 True-ups included in 2015, 2016 and 2017 projected rates Refunds for Schedules 7, 8, 26, 37, 38, 26A were completed by MISO Refunds for Schedule 9 were completed by Ameren Schedule 9 Refund amounts and supporting documents are posted on Ameren’s OASIS

6 AIC Revenue Requirement
Projected 2017 vs Projected 2018 (Projected 2017 = Current Effective 10.82% ROE)

7 Aic 2018 PROJECTED rate base
Page.Line 2017 Projection 2018 Projection Change Percent 2.6 Total Gross Plant 2,296,555,948 2,603,238,875 306,682,928 13% 2.12 Total Accum Depreciation 525,122,593 541,401,482 16,278,889 3% 2.18 TOTAL NET PLANT 1,771,433,355 2,061,837,394 290,404,039 16% 2.18a 100% CWIP RECOVERY 8,709,958 -8,709,958 N/A ADJUSTMENTS TO RATE BASE 2.20 Account No. 282 -484,788,908 -520,165,030 -35,376,122 7% 2.21 Account No. 283 -10,255,343 -20,366,151 -10,110,808 99% 2.22 Account No. 190 49,214,591 44,543,127 -4,671,464 -9% 2.23 Account No. 255 2.25 Land Held for Future Use 2,484,054 2,438,967 -45,087 -2% 2.26 CWC 6,210,229 6,655,963 445,734 2.27 Materials & Supplies 13,677,702 14,460,942 783,240 6% 2.28 Prepayments 1,638,369 1,946,709 308,340 19% TOTAL ADJUSTMENTS -421,819,306 -470,485,474 -48,666,168 12% 2.30 TOTAL RATE BASE 1,358,324,006 1,591,351,920 233,027,913 17%

8 Aic 2018 PROJECTED expenses
Page.Line 2017 Projection 2018 Projection Change Percent O&M 3.1 Transmission 59,336,832 59,219,133 -117,699 0% 3.1a Less LSE Expenses 1,703,652 1,444,779 -258,873 -15% 3.2 Less Account 565 23,725,630 21,760,225 -1,965,405 -8% 3.3 A&G 15,413,506 17,175,591 1,762,085 11% 3.4 Less FERC Annual Fees N/A 3.5 Less EPRI, ect. 243,164 227,761 -15,403 -6% 3.5a Plus Trans. Reg. Comm. Exp 603,944 285,746 -318,198 -53% 3.8 TOTAL O&M 49,681,835 53,247,705 3,565,870 7% 3.12 TOTAL DEPRECIATION 42,958,714 49,739,417 6,780,703 16% TAXES 3.13 Payroll 893,601 911,941 18,339 2% 3.16 Property 1,364,211 1,468,525 104,314 8% 3.18 Other 481,037 510,091 29,054 6% 3.27 Income Taxes 50,884,298 62,505,087 11,620,790 23% TOTAL TAXES 53,623,147 65,395,644 11,772,497 22% TOTAL EXPENSES 146,263,697 168,382,766 22,119,070 15%

9 Aic 2018 PROJECTED Capital structure
Capital Structure Projection Page.Line $ % Cost Weighted 4.27 Long Term Debt 2,665,883,538 47.30% 0.0550 0.0260 4.28 Preferred Stock 61,721,350 1.10% 0.0490 0.0005 4.29 Common Stock 2,908,148,803 51.60% 0.1082 0.0558 4.3 Total 5,635,753,692 100.0% 0.0824 Capital Structure Projection 3,011,659,846 47.40% 0.0511 0.0242 61,632,375 0.97% 0.0491 3,280,381,766 51.63% 0.0559 6,353,673,988 0.0806 Change in Return %

10 Aic 2018 PROJECTED total revenue requirement
Page.Line 2017 Projection 2018 Projection Change Percent 2.30 TOTAL RATE BASE 1,358,324,006 1,591,351,920 233,027,913 17% 4.30 Rate of Return 8.24% 8.06% -0.18% -2% 3.28 Return 111,915,393 128,234,677 16,319,284 15% Total Expenses 146,263,697 168,382,766 22,119,070 3.29 TOTAL GROSS REV. REQ. 258,179,090 296,617,443 38,438,353 3.30 Less ATT. GG Adjustment 16,346,548 16,102,893 -243,655 -1% 3.30a Less ATT. MM Adjustment 14,052,764 13,877,607 -175,158 3.31 GROSS REV. REQ. UNDER ATT. O 227,779,777 266,636,943 38,857,166

11 Aic 2018 PROJECTED true up & Net revenue requirement
Page.Line 2017 Projection 2018 Projection Change Percent 1.1 Gross Revenue Requirement $227,779,777 $266,636,943 38,857,166 17% 1.6 Total Revenue Credits $13,682,453 $13,569,507 -112,947 -1% 1.6a Historic Year Actual ATRR $163,559,846 $209,040,500 45,480,654 28% 1.6b Projected ATRR from Prior Year $158,036,243 $204,663,896 46,627,653 30% 1.6c Prior Year ATRR True-Up $5,523,603 $4,376,604 -1,146,999 -21% 1.6d Prior Year Divisor True-Up $3,916,998 $3,530,885 -386,113 -10% 1.6e Interest on Prior Year True-Up $61,855 $132,087 70,232 114% 1.7a NET REVENUE REQUIREMENT $223,599,780 $261,107,013 37,507,233 1.7b Prairie Power 1.7 AIC Adjusted Revenue Requirement

12 Aic 2016 attachment o true up
Ameren Illinois Company - AIC Attachment O Weighted Revenue Requirement True-Up (WP 14) Year Ended December 31, 2016 Attachment O 2016 True-up calculation (Schedule 9) 2016 Rev Req at 2016 Weighted Calculation of 2016 Weighted Attachment O Rev Req 12.38% 10.82% Rev Req Net Actual 2016 Rev Req (Actual Attach O, Pg 1, Line 7) $212,259,491 $198,573,302 Percent of Actual Revenue Requirement at ROE 76.48% 23.52% Weighted Net Actual 2016 Rev Requirement $162,336,059 $46,704,441 $209,040,500 Net Projected 2016 Rev Req (Projected Attach O, Pg 1, Line 7) $207,864,823 $194,255,438 Percent of Projected Revenue at ROE Weighted Net Projected 2016 Rev Requirement $158,975,017 $45,688,879 $204,663,896 Under/(Over) Collection of 2016 Weighted Net Rev Req 3,361,042 1,015,562 4,376,604 Historic Year Actual Divisor for Transmission Owner (Attach O, Pg 1, Line 15) 6,995,393 Proj'd Yr Divisor for Transmission Owner (Projected Attach O, Pg 1, Line 15) 7,118,197 Difference between Historic & Projected Yr Divisor 122,804 Prior Year Projected Annual Cost ($ per kw per yr) $ $ Percent of Revenue Received at ROE Weighted Prior Yr projected Annual Cost ($ per kw per year) $ $6.4186 $ Under/(Over) Collection of 2016 Divisor True-up $3,530,885 Total Under/(Over) Recovery 7,907,489 Monthly Interest Rate (Over collection = FERC rate, Under collection = company rate) 0.0696% Interest For 24 Months $132,087 Total 2016 Attachment O True-up Under/(Over) Recovery (To be included in Projected 2018) $ ,039,576

13 Aic 2018 PROJECTED attachment gg
AIC Attachment GG Calculation - Page 1 (1) (2) (3) (4) Attachment O Line Page, Line, Col. Transmission Allocator No. 1 Gross Transmission Plant - Total Attach O, p 2, line 2 col 5 (Note A) 2,519,928,586 2 Net Transmission Plant - Total Attach O, p 2, line 14 and 23b col 5 (Note B) 2,011,261,348 O&M EXPENSE 3 Total O&M Allocated to Transmission Attach O, p 3, line 8 col 5 53,247,705 4 Annual Allocation Factor for O&M (line 3 divided by line 1 col 3) 2.11% GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE 5 Total G&C Depreciation Expense Attach O, p 3, lines 10 & 11, col 5 (Note H) 6,323,279 6 Annual Allocation Factor for G&C Depreciation Expense (line 5 divided by line 1 col 3) 0.25% TAXES OTHER THAN INCOME TAXES 7 Total Other Taxes Attach O, p 3, line 20 col 5 2,890,557 8 Annual Allocation Factor for Other Taxes (line 7 divided by line 1 col 3) 0.11% 9 Annual Allocation Factor for Expense Sum of line 4, 6, and 8 2.48% INCOME TAXES 10 Total Income Taxes Attach O, p 3, line 27 col 5 62,505,087 11 Annual Allocation Factor for Income Taxes (line 10 divided by line 2 col 3) 3.11% RETURN 12 Return on Rate Base Attach O, p 3, line 28 col 5 128,234,677 13 Annual Allocation Factor for Return on Rate Base (line 12 divided by line 2 col 3) 6.38% 14 Annual Allocation Factor for Return Sum of line 11 and 13 9.48%

14 Aic 2018 PROJECTED attachment gg
AIC Attachment GG Calculation - Page 2 (1) (2) (3) (4) (5) (6) Line No. Project Name MTEP Project Number Project Gross Plant Annual Allocation Factor for Expense Annual Expense Charge Project Net Plant (Note C) (Page 1 line 9) (Col. 3 * Col. 4) (Note D) 1a Wood River-Roxford kV line 728 $3,424,487 2.48% $84,883 $2,836,419 1b Sidney-Paxton 138kV Reconductor 18 miles 870 $5,994,479 $148,585 $4,895,985 1c Coffeen Plant-Coffeen, North - 2nd. Bus tie 2829 $5,592,558 $138,623 $4,829,534 1d Latham - Oreana 8.5 mile 345kV line 2068 $23,630,957 $585,741 $21,776,486 1e Brokaw – S. Bloom 345/138kV Trans& 345 line 2069 $30,470,958 $755,284 $28,739,135 1f Fargo-Mapleridge-20 mile 345kV line & New Sub 2472 $53,702,763 $1,331,132 $51,730,112 (7) (8) (9) (10) (11) (12) Annual Allocation Factor for Return Annual Return Charge Project Depreciation Expense Annual Revenue Requirement True-Up Adjustment - Weighted ROE Network Upgrade Charge (Page 1 line 14) (Col. 6 * Col. 7) (Note E) (Sum Col. 5, 8 & 9) (Note F) Sum Col. 10 & 11 (Note G) 9.48% $268,994 $52,502 $406,380 ($15,481) $390,899 $464,315 $99,719 $712,619 ($27,057) $685,562 $458,013 $104,272 $700,908 ($21,998) $678,910 $2,065,192 $416,167 $3,067,101 ($91,953) $2,975,148 $2,725,501 $568,474 $4,049,259 $18,776 $4,068,035 $4,905,871 $929,623 $7,166,627 $294,396 $7,461,023 2 Annual Totals $16,102,893 $156,683 $16,259,576 3 Rev. Req. Adj For Attachment O

15 Aic 2016 attachment gg True-up
2016 Attachment GG True-Up Adjustment - Weighted ROE To be completed after the Attachment GG using actual data is completed for the True-Up Year Company Name: AIC True-Up Year: 2016 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Actual Projected Attachment GG True-Up Applicable MTEP Annual Revenues Adjustment Interest Total Line Project Revenue Allocated Principal Rate on No. Name Number Requirement 1 to Projects 1 Under/(Over) [Col. (d), line 1 x (Col. (e), line 2x / Col. (h) x Col. (i) p 2 of 2, Col. 102 Col. (e), line 3)]2 Col. (g) - Col. (f) Line 5 x 24 months 2 Col. (h) + Col. (j) 1 Actual Attachment GG revenues for True-Up Year 1 $14,774,285 2a Wood River-Roxford kV line 728 $460,665 $470,942 $455,715 ($15,227) 0.0696% ($254) ($15,481) 2b Sidney-Paxton 138kV Reconductor 18 miles 870 $808,523 $826,560 $799,948 ($26,612) ($445) ($27,057) 2c Coffeen Plant-Coffeen, North - 2nd. Bus tie 2829 $791,231 $808,882 $787,245 ($21,637) ($361) ($21,998) 2d Latham - Oreana 8.5 mile 345kV line 2068 $3,453,281 $3,530,320 $3,439,878 ($90,442) ($1,511) ($91,953) 2e Brokaw-S. Bloom 345/138kV Trans & 345kV line 2069 $4,418,811 $4,517,390 $4,535,858 $18,468 $308 $18,776 2f Fargo-Mapleridge-20 mile 345kV line & New Sub 2472 $4,519,369 $4,620,191 $4,909,750 $289,559 $4,837 $294,396 2g 2h 2i 2j 3 Subtotal $14,451,880 $14,928,394 4 Under/(Over) Recovery $154,109 $2,574 $156,683 5 Applicable Interest rate per month (expressed to four decimal places) Interest Rate updated through July 2017 Amount excludes True-Up Adjustment, as reported in True-Up Year projected Attachment GG, page 2, column 11. 2 Rounded to whole dollars. 2016 Attachment GG True-up Adjustment Weighted ROE = &

16 Aic 2018 PROJECTED attachment MM
AIC Attachment MM Calculation - Page 1 Attachment O Line Page, Line, Col. Transmission Allocator No. 1 Gross Transmission Plant - Total Attach O, p 2, line 2 col 5 (Note A) 2,519,928,586 1a Transmission Accumulated Depreciation Attach O, p 2, line 8 col 5 (Note J) 508,667,237 2 Net Transmission Plant - Total Line 1 minus Line 1a (Note B) 2,011,261,348 O&M TRANSMISSION EXPENSE 3 Total O&M Allocated to Transmission Attach O, p 3, line 8 col 5 53,247,705 3a Transmission O&M Attach O, p 3, line 1 col 5 59,219,133 3b Less: LSE Expenses included in above, if any Attach O, p 3, line 1a col 5, if any 1,444,779 3c Less: Account 565 included in above, if any Attach O, p 3, line 2 col 5, if any 21,760,225 3d Adjusted Transmission O&M Line 3a minus Line 3b minus Line 3c 36,014,128 4 Annual Allocation Factor for Transmission O&M (Line 3d divided by line 1a, col 3) 7.08% OTHER O&M EXPENSE 4a Other O&M Allocated to Transmission Line 3 minus Line 3d 17,233,576 4b Annual Allocation Factor for Other O&M Line 4a divided by Line 1, col 3 0.68% GENERAL AND COMMON (G&C) DEPRECIATION EXPENSE 5 Total G&C Depreciation Expense Attach O, p 3, lines 10 & 11, col 5 (Note H) 6,323,279 6 Annual Allocation Factor for G&C Depreciation Expense (line 5 divided by line 1 col 3) 0.25% TAXES OTHER THAN INCOME TAXES 7 Total Other Taxes Attach O, p 3, line 20 col 5 2,890,557 8 Annual Allocation Factor for Other Taxes (line 7 divided by line 1 col 3) 0.11% 9 Annual Allocation Factor for Other Expense Sum of line 4b, 6, and 8 1.05% INCOME TAXES 10 Total Income Taxes Attach O, p 3, line 27 col 5 62,505,087 11 Annual Allocation Factor for Income Taxes (line 10 divided by line 2 col 3) 3.11% RETURN 12 Return on Rate Base Attach O, p 3, line 28 col 5 128,234,677 13 Annual Allocation Factor for Return on Rate Base (line 12 divided by line 2 col 3) 6.38% 14 Annual Allocation Factor for Return Sum of line 11 and 13 9.48%

17 Aic 2018 PROJECTED attachment MM
AIC Attachment MM Calculation - Page 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) Line No. Project Name MTEP Project Number Project Gross Plant Project Accumulated Depreciation Transmission O&M Annual Allocation Factor Annual Allocation for Transmission O&M Expense Other Expense Annual Allocation Factor Annual Allocation for Other Expense Annual Expense Charge (Note C) (Note K) Page 1 line 4 (Col 4 * Col 5) Page 1 line 9 (Col 3 * Col 7) (Col 6 + Col 8) Multi-Value Projects (MVP) 1a Pana-Sugar Creek - CWIP 2237 $0 7.08% 1.05% 1b Pana-Sugar Creek - Plant in Service $44,157,908 $1,455,271 $103,035 $463,451 $566,485 1c Sidney-Rising - CWIP 2239 1d Sidney-Rising - Plant in Service $7,368,221 $344,523 $24,393 $77,332 $101,724 1e Palmyra-Pawnee - CWIP 3017 1f Palmyra-Pawnee - Plant in Service $40,162,620 $1,594,915 $112,922 $421,519 $534,440 1g Fargo-Galesburg-Oak Grove - CWIP 3022 1h Fargo-Galesburg-Oak Grove - Plant in Service $3,852,436 $170,899 $12,100 $40,432 $52,532 1i Pawnee-Pana - CWIP 3169 1j Pawnee-Pana - Plant in Service $18,582,419 $590,738 $41,825 $195,028 $236,853 (10) (11) (12) (13) (14) (15) (16) Project Net Plant Annual Allocation Factor for Return Annual Return Charge Project Depreciation Expense Annual Revenue Requirement True-Up Adjustment - Weighted ROE MVP Annual Adjusted Revenue Requirement (Col 3 - Col 4) (Page 1 line 14) (Col 10 * Col 11) (Note E) (Sum Col. 9, 12 & 13) (Note F) Sum Col. 14 & 15 (Note G) 9.48% ($303,408) $42,702,636 $4,049,743 $728,590 $5,344,818 ($67,627) $5,277,191 $15,466 $7,023,698 $666,099 $137,438 $905,261 $115,122 $1,020,383 ($406,971) $38,567,705 $3,657,603 $699,436 $4,891,480 $489,166 $5,380,646 ($9,824) $3,681,537 $349,142 $68,132 $469,806 $46,153 $515,959 ($145,824) $17,991,681 $1,706,257 $323,132 $2,266,242 $414,272 $2,680,514 2 MVP Total Annual Revenue Requirements $13,877,607 $146,525 $14,024,132 3 Rev. Req. Adj For Attachment O

18 Aic 2016 attachment MM true-up
2016 Attachment MM True-Up Adjustment - Weighted To be completed after the Attachment MM using actual data is completed for the True-Up Year Company Name: AIC True-Up Year: 2016 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Actual Projected Attachment MM True-Up Applicable MTEP Annual Revenues Adjustment Interest Total Line Project Revenue Allocated Principal Rate on No. Name Number Requirement 1 to Projects 1 Under/(Over) [Col. (d), line 1 x (Col. (e), line 2x / Col. (h) x Col. (i) p 2 of 2, Col. 142 Col. (e), line 3)]2 Col. (g) - Col. (f) Line 5 x 24 months 2 Col. (h) + Col. (j) 1 Actual Attachment MM revenues for True-Up Year 1 $10,755,044 2a Pana-Sugar Creek - CWIP 2237 $2,220,811 $2,053,511 $1,755,088 ($298,423) 0.0696% ($4,985) ($303,408) 2b Pana-Sugar Creek - Plant in Service $2,725,322 $2,520,015 $2,453,499 ($66,516) ($1,111) ($67,627) 2c Sidney-Rising - CWIP 2239 $35,307 $32,647 $47,859 $15,212 $254 $15,466 2d Sidney-Rising - Plant in Service $806,258 $745,520 $858,751 $113,231 $1,891 $115,122 2e Palmyra-Pawnee - CWIP 3017 $1,663,313 $1,538,011 $1,137,726 ($400,285) ($6,686) ($406,971) 2f Palmyra-Pawnee - Plant in Service $2,248,640 $2,079,243 $2,560,372 $481,129 $8,037 $489,166 2g Fargo-Galesburg-Oak Grove - CWIP 3022 $23,968 $22,162 $12,499 ($9,663) ($161) ($9,824) 2h Fargo-Galesburg-Oak Grove - Plant $416,009 $384,670 $430,065 $45,395 $758 $46,153 2i Pawnee-Pana - CWIP 3169 $1,041,175 $962,740 $819,312 ($143,428) ($2,396) ($145,824) 2j Pawnee-Pana - Plant in Service $450,459 $416,525 $823,991 $407,466 $6,806 $414,272 3 Subtotal $11,631,262 $10,899,162 4 Under/(Over) Recovery $144,118 $2,407 $146,525 5 Applicable Interest rate per month (expressed to four decimal places) Interest Rate updated through July 2017 Amount excludes True-Up Adjustment, as reported in True-Up Year projected Attachment MM, page 2, column 15. 2 Rounded to whole dollars. 2016 Attachment MM True-up Adjustment Weighted ROE = &

19 AMIL Pricing Zone Schedule 9 charge
Page.Line 2017 Projection 2018 Projection Change Percent 1.7 AIC Adjusted Revenue Requirement $223,599,780 $261,107,013 37,507,233 17% ATXI Adjusted Revenue Requirement $9,052,295 $8,429,056 -623,239 -7% PPI Adjusted Revenue Requirement $7,271,187 0% Total Revenue Requirement $239,923,262 $276,807,255 $36,883,993 15% 1.15 Ameren Illinois Divisor 7,315,667 7,304,167 -11,500 Annual Cost ($/kW/Yr) $32.80 $37.90 5.10 16% Network & P-to-P Rate ($/kW/Mo) $2.73 $3.16 0.43 PPI’s 2018 revenue requirement is not required to be posted until 10/1/17 so the PPI current revenue requirement is shown above for both years.

20 2018 PROJECTED projects added to transmission plant
Total Cost Project Name ($ Millions) Cahokia-Dupo Ferry-Buck Knob 21.9 Ramsey East Ring Bus 19.8 Prest Ring Bus 14.0 Muddy - West Frankfort E 13.7 Intelligrid 13.4 Physical Security Projects Jerseyville NW - Roodhouse 12.8 Albion S - Olney N 12.7 Pana N - Route 51 11.8 Granite City Ring Bus 11.6 Lawrenceville S - Olney N 11.3 Neoga South Expansion 11.2 Albion S - Norris City N 10.6 Muddy - Norris City N 10.3 188.4

21 Transmission Pricing - Attachments O, GG & MM Information
Miso web links Transmission Pricing - Attachments O, GG & MM Information Ameren OASIS MTEP 17 Schedule 26 & 26-A Indicative Charges Additional questions on these topics can be sent to Ameren at:

22 QUESTIONS?


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